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TMI Blog2016 (9) TMI 358X X X X Extracts X X X X X X X X Extracts X X X X ..... 6 (hereafter „B/E No. 1‟) dated 13th February, 2012 in a single consignment and warehoused the said consignment in a public bonded warehouse by executing a Warehousing Bond under Section 59 of the Customs Act, 1962 („Act‟). 3. GIL imported 300 Power Tooth Brushes under B/E No. 6029833 dated 17th February, 2012 (hereafter „B/E No. 2‟) and executed a warehousing bond in respect thereof under Section 59 of the Act. 4. The third consignment comprising (a) 76,800 units of Gillette Mach 3 Cartridges (b) 1,02,400 units of Gillette Mach 3 (c) 2,68,800 units of Gillette Mach 3 Cartridges (d) 30,720 units of Gillette Fusion Cartridges was imported by Bill of Entry No.6568999 (hereafter „B/E No. 3‟) da ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y, a penalty of Rs. 10,000/- was imposed under Section 112 of the Act. 7. As far as B/E No. 2 is concerned, a separate order of the same date was passed confiscating the goods and giving an option to GIL to redeem the goods on paying a redemption fine of Rs. 10,000/- under Section 125 of the Act within 30 days. A penalty of Rs. 5,000/- was levied under Section 112 of the Act. 8. It is not in dispute that the aforementioned two Orders-in-original dated 31st December 2013 were not challenged by the Petitioner. 9. As far as B/E No. 3 is concerned, on 30th December 2014 the DC (Bond) passed an order confiscating the goods, giving an option to GIL to redeem them on payment of redemption fine of Rs. 50,000/- within 30 days. It was further dire ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... redemption fine by a challan dated 12th May 2014 with a delay of 100 days, which if calculated from the date of receipt of the order worked out to 51 days. 14. On 25th July 2014, GIL addressed a letter to the Commissioner of Customs seeking permission to clear the goods under B/E Nos. 1 and 2 in view of the aforementioned payments. 15. On 30th December 2014, GIL addressed a letter to the DC (Bond) seeking permission for ex-bonding of the goods warehoused under B/E Nos. 1 and 2. 16. However on 11th February 2016 an Internal Auction Catalogue was issued offering the goods confiscated under B/E Nos.1, 2 and 3 for auction on 16th February 2016. On 12th February 2016, GIL addressed a letter to the DC (Bond) requesting that the said goods be w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the Department cannot appropriate the goods and if the importer has already made payment of the duty, interest, penalty and redemption fine (although belatedly but prior to the date of auction), the Department cannot insist on recovering anything more by way of auction sale. He submits that as far as B/E Nos. 1 and 2 are concerned even if an auction sale of the good imported thereunder has taken place, the amount recovered by the Department, in excess of the duty, interest, penalty and redemption fine will have to be handed over to the importer. In support of this submission reliance is placed by Mr. Mehta on the decision of the Division Bench of this Court in MMTC v. Surjit Singh Kanda 196 (2013) DLT 725 (DB). 20. As far as B/E No.3 is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inal, with such Order-in-Original not being challenged, was not present before the Court in MMTC v. Surjit Singh (supra). 22. The question that arises, therefore, is whether notwithstanding that an importer may not have made the payment of the redemption fine duty interest and penalty within the time stipulated in the order of confiscation of imported goods passed under Section 125 read with Section 126 of the Act, and which order has attained finality, but makes such payment belatedly and prior to the date of auction, the Central Government can recover, through the process of auction of such goods, only such amount as was due to it, viz., the customs duty, interest, penalty and redemption fine and any excess amount recovered by the Centra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e return of the aforementioned goods that are handed over to the auction purchaser. The question whether the Department is required to pay GIL the amount recovered in excess of the duty, interest, penalty and redemption fine will be considered, and appropriate directions issued in that regard, by the Larger Bench while disposing of the petition. 25. As far as B/E No.3 is concerned, the appeal preferred by GIL against the Order-in-Original dated 30th December 2014 is stated to be pending before the CCA. In terms of the Circular No. 711/4/2006 dated 14th February 2006 issued by the CBEC, the Department had to seek the permission of the CCA before proceeding with the auction. Accordingly, the Court directs status quo in respect of the auction ..... X X X X Extracts X X X X X X X X Extracts X X X X
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